Which of the following statements does NOT describe an ABC system?
A)ABC systems can create more accurate product costs.
B)ABC systems may only be used by service companies.
C)ABC systems are more complex and costly than traditional costing systems.
D)ABC systems are used in both manufacturing and nonmanufacturing companies.

Question

Quizplus · Accepted Answer

ABC systems are used by both manufacturing and nonmanufacturing companies, but B states that it may only be used by service companies, which is incorrect.

Which of the Following Statements Does NOT Describe an ABC